Mantra Group shares have risen as much as 18 per cent after the local hotel operator was subject of a $1.18 billion takeover proposal from global giant Accor.
The French hotel operator has offered $3.96 in cash for each Mantra share, which were worth $3.23 on Friday.
The news that Mantra has granted Accor access to due diligence sent the company's shares flying as high as $3.81.
"Mantra has granted Accor access to due diligence to determine if a transaction can be agreed and recommended unanimously by the Mantra board," Mantra said in a statement to the ASX on Monday.
MTR's portfolio consists of a total of 127 properties and over 15,000 rooms across Australia, New Zealand and Indonesia.
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Mantra shares closed 53 cents, or 16.4 per cent, higher at $3.76.
